Be wary of HMRC fines, warns accountant
Small businesses should be aware of the Business Records Check being conducted by HMRC to avoid hefty fines. That’s the view of Grantham accountant Lloyd Stubbs.
Up to 40 per cent of the UK’s small and medium sized businesses are being targeted in this latest campaign, said Stubbs.
Businesses with poor bookkeeping records, where tax is more likely to have been underpaid, are at a higher risk of investigation and need to be aware of the consequences.
Stubbs said: “Keeping up to date with bookkeeping can be a big administrative job that often becomes a burden to small businesses. However, keeping on top of records can lead to better management of your business and its cashflow. Plus, HMRC is less likely to take further action if your records are found to be satisfactory.”
“If you think your records may not be up to scratch, you should think about making improvements by using proper filing systems, spreadsheets or a computerised bookkeeping package. If records are not kept in order penalties of up to £3,000 can be issued. However, if the taxman does come calling and you are charged a penalty, there is the option to appeal against the decision.”
